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Analysis of Financial Distress Model with Altman, Zmijewski and CA Score in Predicting the Condition of Financial Distress in Manufacturing Public Companies in Indonesia

Author

Listed:
  • Riyana Sari
  • Mokhamad Anwar
  • Leni Susanti

Abstract

The purpose of this paper is to test the accuracy of the prediction model by Altman, Zmijewski, CA Score in predicting the condition of financial distress of manufacturing companies listed on the Indonesia Stock Exchange. The research method used in this research is descriptive and comparative method. The statistical test used in this study is the discriminant method and the Nested Test. The test results show that the CAScore model is more accurate than the discriminant research model for each calculation of accuracy every year and for each model.

Suggested Citation

  • Riyana Sari & Mokhamad Anwar & Leni Susanti, 2019. "Analysis of Financial Distress Model with Altman, Zmijewski and CA Score in Predicting the Condition of Financial Distress in Manufacturing Public Companies in Indonesia," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(1), pages 114-131, March.
    • Handle: RePEc:khe:scajes:v:5:y:2019:i:1:p:114-131
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    References listed on IDEAS

    as
    1. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
    2. Edward I. Altman, 1968. "The Prediction Of Corporate Bankruptcy: A Discriminant Analysis," Journal of Finance, American Finance Association, vol. 23(1), pages 193-194, March.
    3. Harlan Platt & Marjorie Platt, 2002. "Predicting corporate financial distress: Reflections on choice-based sample bias," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 26(2), pages 184-199, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Altman Score; Zmijewski Score; Financial distress;
    All these keywords.

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

    Statistics

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